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Humans, on the whole, have a natural propensity towards optimism. If we didn’t, we would never have endured the periodic freezes that punctuated our existence – as our distant ancestors stared at a bleak iced over tundra from the mouths of their caves – as those who have lost their jobs might now be staring out their windows at a bleak overcast commuter estate –  they would have thrown in the towel (or bearskin) if they didn’t have this inclination to hope for better. In fact Anthropologists believe that it was in times of climatic change that we saw major spurts in our evolution – that is the thing about humans: we fight our way out of adversity.

As we will with the current economic crisis. The writer’s natural optimism figures that the Senior Eurocrats have a plan, most likely in the form of the collective issuance of Eurobonds, however it is waiting till the last possible moment before it enacts this plan, as in the interim the basket case countries are implementing austerity and reforms that they would not be inclined to implement if they felt secure in the knowledge that there is a safety net of Eurobonds. This is what is termed Moral Hazard. If they keep the conditions arctic, we will put our heads down and take the pain. If they show us some respite, then we will promptly demand a pay rise and book the sun holiday.

According to today’s Daily Telegraph Europe is owning up to a plan – it appears that the first technical discusions are being had on what it terms ‘stability bonds’.

Germany is of course reluctant to agree to universal bond that will see a higher rate imposed on its bonds. However, the imperative is relentless – Spain is beginning to suffer impractical spreads on its bonds. Whatever about Germany’s reluctance, or the reluctance of the seventeen nations of the eurozone to surrender something of their fiscal sovereignty, circumstances are passing them by – it will be a choice between a compromise or disaster.  However, from the prow of this sinking ship the German finance minister stridently protests about the dangers of moral hazard. The idea of the lazy Greek resuming  the indolent life of living off the fat of German land has become the German nightmare.